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{{propApi.successMessage}} {{region}} Change locationFederal Budget to deliver productivity boost for Housing and Small Business
Federal Budget to deliver productivity boost for Housing and Small Business
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Key Budget initiatives include funding to provide free public access to Australian Standards, making the instant asset write off permanent, measures to remove housing and planning red tape, and increased support for modern methods of construction (MMC).
HIA Managing Director Jocelyn Martin said “the package represents a significant step toward addressing declining productivity across the residential building sector and easing cost pressures undermining housing supply.
“This Budget recognises that productivity reform is essential if Australia is to build more homes, faster and at lower cost,” Ms Martin said.
“Free access to Australian Standards alone will remove a major and unnecessary cost on builders, tradies and small businesses, while improving compliance, safety and consistency across the industry.
The decision to make the instant asset write off permanent provides certainty for small and medium sized building businesses, encouraging continued investment in tools, equipment and productivity enhancing technology.
“Certainty matters,” Ms Martin said.
“Making the instant asset write off permanent gives housing businesses the confidence to invest, grow and lift productivity.”
HIA also welcomed the Government’s renewed focus on cutting housing and planning red tape, noting that regulatory delays, duplication and complexity remain among the biggest barriers to boosting housing supply and affordability.
A Productivity Commission report on economic resilience released in December estimated that red tape constricting the housing industry is costing the economy $47.5 billion. The Commission also found that regulation can add up to $320,000 to the cost of a new detached house and around $175,000 to the cost of a new apartment.
“These figures show clearly that regulation is not just a policy issue — it is one of the major drivers of Australia’s housing affordability crisis,” Ms Martin said.
“Every unnecessary layer of regulation adds cost, time and risk to housing projects, ultimately pushing home ownership further out of reach.”
Support for the uptake of modern methods of construction, including prefabrication, digital design and advanced manufacturing, is also welcomed as a practical response to workforce shortages and productivity challenges.
“Modern methods of construction are critical to lifting productivity and meeting future housing demand,” Ms Martin said.
“This investment aligns directly with Productivity Commission findings and HIA’s long running calls for reform.”
“These measures focus on where the real solutions lie — cutting red tape and boosting productivity — rather than chasing headline grabbing measures that tinker with housing taxation and investment settings,” she said.
“If governments are serious about improving affordability, the most effective reforms are those that lower construction costs, streamline approvals and make it easier to build.”
HIA said the challenge now would be ensuring the reforms are implemented quickly and consistently to deliver real outcomes for housing supply, affordability and jobs.
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Approvals increase a welcome but further work needed on regulatory burdens
Tasmania's home building pipeline is filling up faster than it is emptying. Building approvals are well up over the past year, but the number of homes actually getting underway continues to lag.
Home building falls to almost 30 per cent below Government's target
“Australia needed to deliver an annual rate of 240,000 new homes to reach the 1.2 million new homes target, but in the 12 months to March, just 197,340 new homes commenced construction,” stated HIA Senior Economist, Tom Devitt.
Skilled migration information session and delegation
Workforce shortages remain one of the biggest constraints on housing delivery and we are continuing to work at all ends of the spectrum to grow and develop the WA residential construction workforce – from apprentices to skilled migrants.
Housing targets depend on more than university graduates
The Housing Industry Association (HIA) welcomes today's contribution from the Australian Chamber of Commerce and Industry (ACCI) to the national debate on education and skills, Australia needs a better balance between university and vocational education if it is to solve its housing shortage. HIA Executive Director Future Workforce Mike Hermon said today.